The head of Lloyds Banking Group is, for the first time, set to have his bonus
package linked to the lender’s return to the private sector, The Times can
reveal.

The 40 per cent taxpayer-owned bank is in discussions with the Government over
a new £1.5 million incentive package for António Horta-Osório, the chief
executive, which varies according to the price at which the State offloads
its shareholding.

Such an announcement, which could come as early as Friday, when the bank’s
annual results are published, will dramatically raise hopes that some shares
can be sold before the 2015 election.